Wolf readies plan for tax hike, minimum wage increase

HARRISBURG — Pennsylvania residents likely will hear a proposal for a broad-based tax increase when Gov. Tom Wolf proposes his first budget next week.

After meeting with business leaders Tuesday, Wolf declined to discuss details of his plan but would not rule out a graduated income tax targeting high-income brackets — a structure he has touted in the past.

"What I talked about was a fairer tax system — I do intend to present that," he told reporters. "This is a chance for a reset. I hope the people of Pennsylvania will be pleased with what I propose."

Despite a projected $2.3 billion deficit, any new tax proposal is virtually certain to meet resistance in the Republican-led Legislature.

Republicans have made it clear that they will not consider new revenue until the state addresses the pension-funding crisis.

Asked if he expected a budget battle with the Legislature in the months after his address next Tuesday, Wolf said he believes he can find common ground with GOP leaders on the need to better fund schools and invest in job creation.

"I think an increase to $10.10 makes sense," Wolf said, citing Walmart's recent announcement that it would boost its starting salaries to $9 this year and $10 in 2016.

Gene Barr, president of the Pennsylvania Chamber of Business and Industry, which sponsored Tuesday's Economic Forecast Summit, said his group does not support a minimum-wage hike.

"It's a concern for small business," he said. "We all want people to grow, but don't think government mandating a certain wage is the way."

Wolf also told reporters he would veto the liquor-privatization bill that cleared a House committee Monday and is scheduled for almost certain House passage later this week if it "reaches my desk in the current form."

WOLF COMING

TO LEHIGH VALLEY

•What? Gov. Tom Wolf will visit Musikfest Cafe at SteelStacks in south Bethlehem

•When? 10 a.m. Wednesday

•Why? Outline his community and economic development plan for 2015-16 budget